Breach of Contract Litigations During COVID-19

a company signing a contract

Businesses across the country continue to face adversities due to COVID-19. One of the many issues that companies are dealing with is breach of contracts. Businesses rely on others to uphold their contractual obligations to sustain their operations, and when a party fails to abide by an agreement, it can result in significant losses. Our New Jersey contract litigation attorneys explain what businesses can do to avoid liability and mitigate risks when dealing with contract disputes.

COVID-19 & Breach of Contract Disputes

As COVID-19 continues to shift the way we do business, companies are facing complex cases involving asset-purchase agreements, construction contracts, commercial leases, payment disputes, and more. Businesses are dealing with frustration and hardship as issues like business closures, lack of staff, and travel restrictions continue to affect the nation.

Payment Disputes

Breached contracts involving payment disputes are common issues occurring during COVID-19. Many businesses are struggling financially, making it difficult to maintain operations and keep contractual agreements.

Performance Delays

In some cases, the impossibility of performance also plays a part in breached contracts. Payment disputes and financial hardship due to COVID-19 can create a snowball effect on material delays and the inability to deliver services. Many companies have been claiming a refund for services or products that were never delivered.

Construction Disputes

Businesses who had a construction agreement during the spread of COVID-19 might experience contractual litigations. The most common issues that companies are facing include construction defects and contract delays.

How to Handle a Breached Contract Dispute During COVID-19

Businesses dealing with contract disputes have a right to file a claim when another company or professional has broken the agreements in a contract. When pursuing a breach of contract lawsuit, your attorney must prove the three following elements:

  1. The Existence of a Valid Contract: To file a breach of contract lawsuit, you need to have a legally binding contract in which both parties accepted its terms.
  2. Breach of Contract Terms: Your attorney will then need to demonstrate that one party failed to do something that was stated in the contract. Breaches can be material or non-material. Material breaches are broken agreements that defeat the original intent of the contract. A non-material agreement is broken agreements that don’t preclude the contract fulfillment.
  3. Damages Resulting from Breached Contract: Your attorney will then need to demonstrate that the breached contract resulted in damages to your business. Damages may include lost profits, income, benefits, or even company reputation.

What Can I Recover from a Breach of Contract Lawsuit?

If your company has been affected by the breach of a contract, an attorney can help you seek compensation for your loss. Depending on your unique contract agreements, an attorney can help you obtain compensatory damages, liquidated damages, restitution, or more. Compensatory damages may include reliance damages, expectation damages, and other financial losses. Some contracts contain a liquidated damages provision, which provides a predetermined amount of money that a court can award to the aggrieved party. Restitution required the breaching party to forfeit any gains received by the breached contract.

Experienced New Jersey Contract Litigation Attorney

At M. Ross & Associates, LLC, we offer comprehensive construction litigation representation to businesses across New Jersey. We help businesses mitigate risks and avoid liability with our extensive experience and resources. With our attorneys handling your construction litigation, you can focus your time and energy on running your business.

Contact our New Jersey contract litigation attorneys today at (201) 897-4942 to schedule a virtual consultation!